Close the Project-Procurement Gap

4castplus Integrates Project Management, Project Controls and a full Procurement Management System

There’s a gap that often exists between Project and Procurement when running major construction projects. This gap can cause data errors and and timing breakdowns that can lead to project delays, cost overruns and significant inefficiencies. With the 4castplus integrated procurement system, this gap is now slammed shut. Finally the whole project team can function in a collaborative environment where data and workflows are shared, and inefficiencies are eliminated.

Procurement’s Critical Role

The procurement team plays a critical role on any project. It’s vital that they remain in constant sync with the rest of the project team for a smooth and successful result. All too commonly, however, procurement operates in relative isolation.
The relationship between the project manager, project engineer, project controls and the procurement team is typically handled with numerous paper documents like a Materials Requisition Document (MRD) or Bill of Materials and many different spreadsheets. The project engineer creates the requisition document out of the list of items needed for the project (often by copying them into a spreadsheet template), and walking it over or emailing it to the buyer for his project. At this point, the purchaser/buyer will begin RFQ and bid analysis; and ultimately, purchase orders will get generated and shared with the rest of the project team. Unfortunately, with this type of disconnected structure, data and communication can easily get lost and errors are often introduced. Not only that, but the effort of copying data around is time consuming and inefficient.

What We did About it at 4castplus

After hearing the many cries of frustration felt by many folks in the construction project industry, we at 4castplus decided we’d do something to resolve that riddle so that they could all live under the same roof. Introducing 4castplus Integrated Procurement Management – a closed-loop project-procurement management software solution with One-Touch Data simplicity and control.

When using 4castplus, a user can create an electronic Purchase Requisition using the exact materials, equipment and contracted services that are specified on an estimate. Using the close workflow between Projects and Procurement, that same Purchase Requisition is then shared with and used by procurement to create RFQs and Purchase Orders; in addition to being able to post receives and invoices on the exact same items.

In doing this, the data used on the estimate is the same exact data that ends up on a purchase order and tracked. There’s nothing that gets copied or even printed and everyone’s looking at the same pieces of information. All this information is digitally signed and electronic, so the control & auditability of this information is always clear and transparent. Additionally, it’s this same information that gets tracked as materials and services are received or completed on the project. Again, no disconnect, all the same data.

Also, when an RFI comes in and a change order is created, the purchasing requirements for this change order (via the CO estimate) can flow through to procurement in the same way; and either new POs can be created, or existing committed POs can be modified under the audit trail of the change order. Either way, all change orders and related purchase orders are transparent and auditable.

Close The Gap

The disconnect that emerges when the same information isn’t being used by all the players in a major project, can have significant influence on the success of that project. Ensuring that information flows seamlessly, not only creates a highly-collaborative environment, but it also drastically reduces inefficiencies, delays and errors caused by copying data around. With the One-Touch data capabilities found in 4castplus, organizations can finally achieve that highly productive environment they’ve been looking for.